May 14, 2018 District No. 2 Meeting Minutes

MINUTES Of the MEETING OF THE COMMISSIONERS Of the BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2 Terry, Montana MAY 14, 2018 Before the meeting could be called to order, the following nominations, elections and appointments needed to be made: The meeting was then turned over to Scott Sackman who declared nominations open for President of the Buffalo Rapids Irrigation District No. 2. Barry Rakes was nominated by Lance Kalfell. Lance Kalfell made a motion, seconded by Scott Sackman, that all nominations cease, and a unanimous ballot be cast for Barry Rakes. A unanimous ballot was cast for Barry Rakes, and it was, RESOLVED, that Barry Rakes be and he hereby is elected and appointed to the position of President of the Buffalo Rapids Irrigation District No. 2, to hold office until the twelfth regular meeting to be held in May of 2019 and/or until his successor is elected and qualified. Mr. Rakes accepts his position. The meeting was turned back to President Barry Rakes. Nominations and appointments were open for Commissioner of Terry Division of the Buffalo Rapids Irrigation District No.2 with Scott Sackman being nominated and appointed by Barry Rakes. Lance Kalfell made a motion that all nominations cease, seconded Barry Rakes, and a unanimous ballot be cast for Scott Sackman. Mr. Scott Sackman's commission was uncontested by any other opponent for the three-year term. A unanimous ballot was cast for Scott Sackman, and it was, RESOLVED, that Scott Sackman be and he is hereby elected and appointed to the position of Commissioner of Terry Division of the Buffalo Rapids Irrigation District No. 2, to hold office until the twelfth regular meeting to be held in May of 2019 and/or until his successor is elected and qualified. Scott Sackman holds the title as Commissioner of Buffalo Rapids Irrigation District No. 2, Terry division. Mr. Sackman accepts his position. President Barry Rakes declared nominations open for Vice President of the Buffalo Rapids Irrigation District No. 2 with Scott Sackman being nominated by Lance Kalfell. Lance Kalfell made a motion, seconded by Barry Rakes, that all nominations cease, and a unanimous ballot be cast for Scott Sackman. A unanimous ballot was cast for Scott Sackman, and it was, RESOLVED, that Scott Sackman be and he is hereby elected to the position of Vice President of the Buffalo Rapids Irrigation District No. 2, to hold office until the twelfth regular meeting to be held in May of 2019 and/or until his successor is elected and qualified. Mr. Sackman accepts his position. Nominations were open for Secretary of the Buffalo Rapids Irrigation District No. 2 with Tim Kortum being nominated by Barry Rakes. Barry Rakes made a motion, seconded by Scott Sackman, that all nominations cease, and a unanimous ballot be cast for Tim Kortum. A unanimous ballot was cast for Tim Kortum, and it was, RESOLVED, that Tim Kortum be and he is hereby elected to the position of Secretary of the Buffalo Rapids Irrigation District No. 2, to hold office until the twelfth regular meeting to be held in May of 2019 and/or until his successor is elected and qualified. Mr. Kortum accepts his position. Nominations were open for Treasurer of the Buffalo Rapids Irrigation District No.2 with Pat Davis being nominated by Barry Rakes. Barry Rakes made a motion, seconded by Scott Sackman, that all nominations cease, and a unanimous ballot be cast for Pat Davis. A unanimous ballot was cast for Pat Davis, and it was, RESOLVED, that Pat Davis be and she is hereby elected to the position of Treasurer of the Buffalo Rapids Irrigation District No. 2, to hold office until the twelfth regular meeting to be held in May of 2019 and/or until her successor is elected and qualified. Mrs. Davis accepts her position. All nominations being made and accepted, the First Regular Meeting of the Members of the Buffalo Rapids Irrigation District No.2, at Terry, Prairie County, Montana, was held on the tenth day of May, 2018, at 7:00 p.m. There were present and participating at the meeting: Barry Rakes Scott Sackman Lance Kalfell Also present and participating were: Pat Davis, Treasurer. President Barry Rakes called the meeting to order, stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member. Thereupon, President Barry Rakes announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business. The Minutes and Resolutions from the April 11, 2018, and April 26, 2018 Board Meetings were approved without corrections and, or additions, by Lance Kalfell seconded by Scott Sackman. All in Favor. Motion Carried FINANCIAL REPORT: Pat Davis presented current budget figures which included payroll and expenditures for May to all Board members for their review. A list of invoices to be paid was submitted and forms for the Prairie County Treasurer to transfer funds in the amount of $52,920.29, to cover payroll and invoices were signed. May 15th estimated payroll: $15,659.27; May estimated invoices $25,113.30; May 31st estimated payroll: $16,867.22. Investment transfer was also signed to invest the remaining monthly District No. 2 cash balances in the amount of $394,354.93 with Prairie County Pool. Warrant numbers from April 12, 2018 to May 14, 2018 range from 24461 to 24519, with voided warrant 24469 that printed incorrectly. The annual audit of Buffalo Rapids Irrigation District No. 2 will be conducted by Strom & Associates, to begin on Monday, May 21, 2018. On a motion made by Lance Kalfell and seconded by Scott Sackman the treasurer’s report was approved. All in Favor. Motion Carried. MANAGER’S REPORT: Mr. Tim Kortum was absent from the meeting as he traveled to Helena to speak with Buffalo Rapids Irrigation District No. 2 attorney, Abigail Brown of Farve & Brown Law Firm. He wanted to speak to Mrs. Brown in person to discuss the issues that the District is dealing with at this time. Mrs. Abigail Brown is scheduled to meet with McAulay Ranch's attorney on May 16, 2017 to discuss the excavation of US Drain 49-10-I, and also the issues of the proposed power increase that would become effective in 2020. Mr. Barry Rakes reported for Tim Kortum, manager, that all pumping plants are ready to go to deliver water for the 2018 water season. The crew has been burning canals, laterals and drains in all divisions and are almost finished. Internal seals have been installed in the discharge lines at the Shirley Pumping plant. Pat Davis presented to the Board a letter from the Bureau of Reclamation stating that the 20 year Project Use Power (PUP) contract 01-PP-67-0020 between Buffalo Rapids Irrigation District No. 2 and Bureau of Reclamation is due to expire on December 31, 2020. They continued to explain in the letter that there would be an increase in power rates to 13.70 mills/kilowatt hours (kWh) from the current rate of 2.5 mills/kWh. The letter proposed a rate increase over a 10-year period so all contractors are paying the prevailing PUP rate. The letter also stated that a response is required by May 31, 2018, or they will assume the District does not wish to enter into a new 30 year PUP contract with the Bureau of Reclamation. The letter was dated May 08, 2018 and received in the Buffalo Rapids District No. 2 office by USPS on May 14, 2018. The Board discussed the issue at length and all agreed that they would wait to hear from their attorney on the issue and have an emergency meeting if necessary to respond to the letter from the Bureau of Reclamation.. The meeting was adjourned on a motion by Lance Kalfell, seconded by Scott Sackman. All in Favor. Motion Carried. ATTESTED: ________________________________ ____________________________________ Tim Kortum, Secretary Barry Rakes, President